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Fertilizers Canada estimates that rail shutdowns could cost the industry C$63 million a day

Posted to Maritime Reporter on August 20, 2024

Fertilizer Canada warned that disruptions to all rail services in Canada will cost the industry between C$55 ($40.34) and C$63 ($46.21) million in lost revenue. This does not include logistical or operational costs.

Canada is the world's largest exporter and producer of potash, the main ingredient in fertilizers. 75% of the fertilizer used and produced in Canada is transported by rail.

Fertilizer Canada estimates that the railways transport 69,000 metric tonnes of fertilizer products per day. This is equivalent to 4 to 5 trains.

In an email, the organization stated that "our industry remains very concerned about the potential for a dual-rail disruption and its cascading effects on Canada's economic security and global food safety."

In 2010, the fertilizer industry contributed approximately $12 billion to Canada’s Gross Domestic Product.

Last week, the organization that represents Nutrien and CF Industries said the industry was already feeling the effects of labour disruption. The railways had issued embargoes on some ammonia fertiliser products, and halted the movement.

The fertilizer industry has lost approximately C$976 Million in sales revenue since 2018.

(source: Reuters)

Tags: Transportation North America

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